Nicolayson

Appellant filed an action for damages for breach of a sales agency agreement. The trial court, sitting without a jury, decided in favor of respondent, and appellant takes this appeal on the judgment roll.

Respondent, Chip Steak Company, a corporation, entered into an agreement with appellant’s assignor, Packer Sales, Inc., giving Packer the exclusive right for one year to sell King Kold products manufactured by respondent in California. Although Packer was not obligated to order or sell any minimum quantity of King Kold products, nor to exert any effort whatever to sell the product, the agreement contained provisions covering price, time of payment, minimum case lot orders, † and place of delivery. Three and one-half months after the contract became effective, respondent notified Packer that it was terminating the agreement at the end of 30 days because of unsatisfactory results. After the 30-day period elapsed, respondent sold its King Kold products directly and Packer assigned to appellant a claim for 15 per cent commission on such sales.

The trial court decided the contract was illusory and lacked mutuality, finding that no consideration flowed from Packer Sales, Inc.,…